I & E FX window: Naira appreciates by 0.04% to N394/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange ( I & E FX) window appreciated by 0.04 per cent to N394 against the dollar on Thursday.

It also closed down by 3.33per cent and 3.38per cent against the euro and Pounds to close at N473.76 and N534.62 respectively.

According to FMDQ, investors and exporters traded $77.04 million.

However, at the parallel market, while the Naira closed flat against the euro and dollar at N580 and N475 respectively, it lost 0.46per cent against the pound to close at N648.

“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investment One research said.

The local currency traded flat at N379.00 against the dollar at the Inter-bank market stories.

The overnight lending rate increased by 8bps to 1.1per cent, following debits for Central Bank of Nigeria (CBN)’s weekly OMO auction.

Trading in the NTB secondary market was bullish, as average yield pared by two basis points to 0.5per cent. Across the curve, average yield expanded at the mid (+3basis points) segment, following sell-off of the 112DTM (+10bps) instrument, but declined at the long (-5 basis points) end due to demand for the 357DTM (-14 basis points) instrument; average yield was flat at the short end.

At the OMO segment, average yield was flat at 0.8per cent.

The Treasury bonds secondary market was bearish in today’s session, as average yield expanded by 19bps to 6.8 per cent.

Across the curve, average yield contracted at the mid (-52 basis points) segment, following buying interests in the MAR-2027 (-211 basis points) bond, and expanded at the long (+77bps) end, due to profit-taking on the MAR-2050 (+190bps) bond. Average yield was flat at the short end.